1. OPERATION MANAGEMENT
SUBMITED TO: SUBMITED BY: GROUP 7
NITISH GOEL (65)
DR. R.K SINGH SANTOSH GHILDIYAL (72)
ANKIT PHARTIYAL (77)
LAISHRAM ARNOLD (91)
DHEERAJ KUMAR (118)

4. BENCHMARKING
 Process of improving performance by
constantly identifying, understanding
and adapting best practices and
processes.
 Comparing one's organization or a part
of it with that of the other companies.

5. TYPES OF BENCHMARKING

6. Benefits of Benchmarking
 Promotes a thorough understanding of company’s own
process
 Saves time and money
 Identify non value added activities
 Focuses on performance measures and processes and
not on products
 It provides a basis for training human resource

7. STAGES IN A BENCHMARKING
Planning:
 Identifying, establishing and documenting specific study
focus areas.
 The best-practice companies are identified and
appropriate data collection tools are selected.
Data collection:
 Information is mainly collected through questionnaires
administered to all best practice companies.
Data analysis & Report:
 Involves the critical evaluation of practices followed, and
the identification of practices that help and deter superior
performance.
Adaptation

8. Benchmarking at Xerox
Benchmarking against Japanese: Xerox found that,
-They take twice as long as its Japanese competitors.
-Five times number of engineers.
- Four times the number of design change.
- Three times the design cost.
Company found that Japanese could produce, ship and sell units for about
the same amount that it cost Xerox to manufacture them.
Xerox’s products had over 30,000 defective parts per million—about 30
times more than its competitors.

9. Benchmarking Model at Xerox
• Planning: Determining the subject to be benchmarked, identify the relevant
best practice and develop most appropriate data collection technique.
•Analysis: Assess the strengths of competitors and compare Xerox’s
performance with competitors.
• Integration: Establish necessary goals and integrate these goals into the
company’s formal planning processes.
• Action: Implement action plans established and assess them periodically to
determine whether the company is achieving its objectives.
• Maturity: Determine whether the company has attained a superior
performance level.

10. Supplier management system
Japanese Companies
•It has 1000 suppliers
•They trained Vendor’s Employee in Quality Control , manufacturing automation.
•Just-in-time i.e. Delivery in small quantities, as per customer’s production Schedule.
Xerox
• Reduced the vendors from 5000 to 400.
• Created a Vendor Certification Process in which suppliers were offered training &
told their areas of improvement.
• Vendors were consulted for better Designs & Improved Customer service.
Inventory Management
Inventory holding Time reduction
•Xerox asked Branch managers to match the Stocking Policy with Customer’s
installation Orders .
• As a result CCP ( Capital Cycle Period) was cut by 70% which leads to savings of
$ 200 million.
• Minimize Inventory Carrying Cost was to delay the assembly of product into the
final Configuration.

11. Manufacturing System
Managers were encouraged to identify its :
Internal Customers ( i.e. Assembly Line Workers) & External Customers ( i.e. End
users who load the papers) in order to meet their needs.
Marketing
Company sent 55,000 questionnaires to monthly to customers to measure customer
Satisfaction & record Competitor’s performance.
Those Competitors who have scored higher, Xerox benchmark itself against it.
Quality
As a part of “Leadership Through Quality” program, Xerox started providing its
customers( External & Internal) innovative products & services.
Total Quality Management
Team consists of Senior managers & Consultants from McKinsey help to make
TQM.
Under which New three SBUs were introduced:
Enterprise Service Business
Office Copiers
Home Copiers
All these have autonomy in Engineering, marketing & pricing.

12. Reaping The Benefits
• Number of defects reduced by 78 per 100 machines.
• Service response time reduced by 27%.
• Inspection of incoming components reduced to below 5%.
• Defects in incoming parts reduced to 150ppm.
• Inventory costs reduced by two-thirds.
• Marketing productivity increased by one-third.
• Distribution productivity increased by 8-10%.

13. • Increased product reliability on account of 40% reduction in
unscheduled maintenance.
• Errors in billing reduced from 8.3% to 3.5% percent.
• Became the leader in the high-volume copier-duplicator
market segment.
• Country units improved sales from 152% to 328%.
• Xerox went to be only company to win three prestigious quality
awards- Malcolm Baldridge National award, Deming award ,and
European quality award .
• During 1990s, Xerox, along with companies like Ford, AT&T,
IBM, Motorola created the International Benchmarking
Clearinghouse (IBC) to promote Benchmarking and guide
companies across the world in benchmarking efforts.